German retailer Metro Cash and Carry has entered the Capital with its tenth outlet in the country. The Group said it will open seven to eight stores in the coming fiscal with an estimated investment of Rs 70 crore per store on an average.
The retail chain, which is present in three metros, said it is also looking to enter Chennai by the end of this year.
“We will be launching two more stores in Delhi and one in Jaipur soon. We have a full city strategy. Starting last year, we have been adding more stores,” Mr Rajeev Bakshi, Managing Director, Metro Cash and Carry India, told reporters.
On extending its presence in India, Mr Bakhsi said the company is looking at a 40-city presence. “It will be opportunistic. Personal consumption is riding high and we see scope for growth there. However, real estate is still a key challenge”.
Metro will be competing in the cash and carry space with other players such as French retail chain Carrefour and American retail biggie Walmart. In Delhi, it will compete with Carrefour. Wal-Mart is still to make its Delhi debut. Wal-Mart has 17 stores while Carrefour has two stores in India.
Asked if it is considering entering front-end retailing, Mr Bakshi said the company did not have any plans for now. India allows 100 per cent FDI in single brand retailing and cash-and-carry. However, in single brand retailing companies must mandatorily source 30 per cent from the domestic market.
Metro said it has invested approximately Rs 45 crore for its Delhi store, spread over 80,000 sq. ft. It has an assortment of 10,000 products.